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Sunday, 31 January 2021

The valuation on Grayscale Bitcoin Cash Trust (BCHG) is ridiculous - and that's preventing retail investors from putting their 401k money into BCH

GBTC and ETHE (Bitcoin and Ethereum Trusts) have reasonable premiums around 10% over the underlying cryptocurrency.

BCHG has a 1,000% premium. To buy a share, you'll pay 10x the amount for Bitcoin Cash you would buy on an exchange.

This means that all but the most sophisticated investors who use a self-directed trust cannot get exposure to Bitcoin Cash in their retirement accounts without paying 10x too much.

Why hasn't BCHG reached a reasonable valuation? If there's so much "demand" for it that the valuation is 10x the market value, why hasn't Grayscale increased the size of the trust to allow more shares? They can literally print money if they did.

Someone else needs to start a Bitcoin Cash Trust that isn't controlled by Grayscale. That trust isn't helping Bitcoin Cash, it's window dressing only.

submitted by /u/some_crypto_guy
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from Bitcoin - The Internet of Money https://ift.tt/3cljr3c

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